Automobile Insurance as an industry works on traditional methods. These methods are tried, tested and used by multiple insurers. They eventually get the same result – Time-consuming claim settlement process and fraudulent claims! Low levels of accuracy and manual processes are the main culprits for an automobile insurer. In this article let’s understand how IoT will transform Auto Insurance Industry for the better.
What Is the Buzz Surrounding IoT?
With the innovation of a new Internet protocol: IPv6, a breakthrough technology called the Internet of Things (IoT) was conceptualized. With IoT, it is possible to make physical objects deliver data. This data can be used to access information related to that object. Let’s understand the concept of IoT with simple examples.
With the help of an IoT device embedded in a chair, one can remotely know if the chair is occupied or find out a free space in the parking lot before entering the premises. Based on these simple examples, one can contemplate the applications of this technology on a large scale.
Irrespective of an industry, IoT can be used to its full potential for accessing real-time information, understanding risks and taking preventative measures. Due to highly innovative nature and customised applications, in almost every industry, IoT has created a huge buzz around the globe.
How Will IoT Transform the Auto Insurance Industry
Considering the practical uses of IoT, this technology is expected to transform the entire Auto Insurance Industry. Over the past centuries, an insurance policy was designed with the focus being on the car rather than the customer as the risk profile of a driver could not be determined accurately.
With advancements in the insurance industry and a positive shift in customers’ demands, the technology of the Internet of things is expected to rule this industry.